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Classification of Arbitrators Part 1
The importance of arbitration classification
Classifying an arbitration as a domestic or international (insert noun e.g. case) has important consequences, especially for what concerns the recognition and enforcement of the arbitral award. However, this distinction is not always easy. This issue is also known as “nationality of the arbitration” or “nationality of the award”.
The classification of the nationality of the arbitration is essential for the following reasons:
- It concerns assistance to the arbitral tribunal during the proceedings, including the challenge and the replacement of arbitrator. The arbitral proceedings need the assistance of national courts for a wide range of issues, from the challenge of the arbitrator to interim measures. For these reasons, the nationality of arbitration is an essential factor to determine the suitable court to assist the proceedings. The court is located in the State in which parties established the seat of arbitration. Usually, the seat is indicated in the arbitration clause or agreement.
- It concerns recognition and enforcement of the award. Only foreign awards are covered by the New York Convention. For this reason, it is important to identify the nationality of the award in relation to the State where the enforcement is sought.
- It concerns the setting aside of the award notwithstanding the opposition to recognition and enforcement of the award which can be done in every court in which they are sought. It is possible to request the setting aside of the award only in the court of the seat of arbitration. For this reason, it is necessary to know the nationality of the award for its annulment.
